The emerging trend for Global Business Solutions is widely embraced by global businesses transformative era. GBS is a more advanced and integrated service model. It is an evolution of Business Process Outsourcing (BPO) and Shared Services with added benefits. Focusing on both process efficiency improvement and cost reduction, GBS aims to drive business excellence through digital strategy.
Global Services integrates the various functions of an enterprise such as finance, HR, IT, property, and facilities into one organizational structure. Not surprisingly, the shift to a GBS model is a trend in finance transformation. GBS is enabling finance transformation. Most finance functions not only analyze readily available financial data, but also analyze data from the macroeconomic, sales, marketing, and customer domains. Most broad organizations practice it to support the strategic and strategic priorities of global business. It is considered a trusted platform for business support functions across the enterprise.
Global Business Solutions in Finance
GBS is the custodian of enormous amounts of financial data. It also deals with data from different functions and business units. As organizations evolve with ‘knowledge-led’ functions, GBS allows the delivery of enterprise analytics services with its multi-functional model. For example, a GBS can integrate data from legacy CRM systems and provide a holistic view of the customer experience. Of course, GBS is also equipped to perform sales analysis, operations, and support chain functions.
GBS makes use of a wide range of data in structured and unstructured forms at such a scale and across multiple functional areas different from traditional single shared services or in-house. Many major GBS organizations with their analytics capabilities have moved to own Analytics rather than just supporting roles in the past.
As global business services drive business, the authentic GBS model is empowered. It fundamentally refines how finance functions are run. They can change the fundamental principles of ownership, and governance. Also, increasing efficiency, saving costs, and providing new business insights.
Benefits Finance Firms Get from Global Business Solutions
GBS has the following features aimed at benefiting finance in one or more ways:
- GBS increases the effect of finance by integrating comprehensive data, platforms, technology, and capabilities along the business. This in turn provides true insights and leads to accurate and actionable business plans.
- In the GBS model, the finance business partners can focus their time on getting insights into the business rather than performing routine finance tasks.
- GBS will quicken market entry and business integration when organizations turn more global or integrate new businesses.
- GBS will allow Finance to speed quickly integrate new geographic extensions into existing infrastructure and seamlessly align across business platforms.
- GBS will facilitate an end-to-end, cross-functional view presenting the business processes so that the financial leader can preview the financial position in a snapshot.
- GBS can help finance teams create new approaches to developing key indicators of financial performance and helps identify process-automation opportunities and innovative uses for digital technologies.
- Finance is perfect to use the connected features of technology. New technologies can frequently be applied to transactional finance processes, changing finance performance and costs.
- Under a single authority structure, finance can add more value. Can drive greater efficiency by integrating at the level of the process.
Preparing To Take Up GBS In Finance
GBS is evolving into a truly different way of reconfiguring back-office processes. Adopting it will trim redundant functions and provide added value to the enterprise. For example, the accounts payable function in an ideal GBS structure is aligned with upstream procurement processes, with performance fully managed and measured. GBS will always align financial derivatives with account data. While accounts can accurately be valued by professional outsourced accounting services.
While moving to global operations, organizations need to establish beachhead teams to launch and expand operations. An essential step in their maintenance is the establishment of financial infrastructure. This task can be considered outsourcing to local service providers.
In a global business stream, companies need to have the right tax and finance infrastructure in place. This is required to be set up early to ensure we are receiving timely reporting and that your foreign entity follows the local corporate policies and procedures.
The Outcome of GBS In Finance
Shifting finance to the GBS model is beneficial for finance, as well as for the reputation of the business. The finance function is organized to create more business impact for the organization. This is possible by collaborating cross-functionally across the enterprise. The result can bring business insights that were previously not possible under a narrow ‘functional’ view.
GBS can be a game changer for finance by redefining its value. Professionals rely on GBS to see if it extends into specialist areas. Fields such as advanced financial planning and analysis and scenario modeling will attract and develop high-calibre talent. Finance organizations are thus well on their way to getting the most out of next-generation GBS.
GBS opens a way to potential value creation that goes beyond a single function. Finance organizations can benefit enhance their scalability, margins, and business efficiency through expert solutions provided by the consulting company.